Briefing on Results for the First quarter of the Fiscal …Briefing on Results for the First quarter of the Fiscal Year ending March 31, 2016 1 First quarter of FY2015/3 First quarter

Briefing on Results for the First quarter of the Fiscal Year ending March 31, 2016

1

First quarter of

FY2015/3

First quarter of

FY2016/3

Change

(YoY)

Rate of

change

(YoY)

Net sales 11,029 100％ 11,156 100％ 127 1.2％

Operating income 613 5.6％ 806 7.2％ 193 31.5％

Ordinary income 685 6.2％ 937 8.4％ 252 36.7％

Net income 400 3.6％ 564 5.1％ 164 40.9％

Capital investment 533 － 344 － △ 189 △35.5％

Depreciation 234 － 296 － 62 26.5%

Net income per share 18.62yen － 26.40yen － 7.78yen 41.8％

ROE － Annualized － Annualized －－

Interim dividends per share －－－－－－

2

(million yen）

First quarter of

FY2015/3

First quarter of

FY2016/3

Change

(YoY)

Rate of

change

(YoY)

Net sales 11,029 100％ 11,156 100％ 127 1.2％

By

pro

duct

Generators 8,174 74.1％ 8,305 74.4％ 131 1.6％

Welders 1,463 13.3％ 1,205 10.8％ △ 258 △ 17.6％

Compressors 188 1.7％ 291 2.6％ 103 54.8％

Others 1,203 10.9％ 1,354 12.1％ 151 12.6％

(million yen)

3

First quarter of

FY2015/3

First quarter of

FY2016/3

Rate of change

(YoY)

Generators 8,174 8,305 1.6％

• In Japan, the shipments of mobile-type

generators and stand-by generating sets were

steady.

• Overseas, the sales for Asia and Middle East

increased steadily.

(million yen)

4

Manufacturing engine-driven generators with capacity

from 1kVA to 1100kVA Mobile-type generators

Power source on a construction site and for civil engineering work

and disaster recovery/restoration, etc.

Stand-by generating sets (stationary type)

Back-up power source such as disaster prevention equipment

and offices, etc.

Power-supply vehicles, power light, etc. Mobile-type generator Stand-by generating sets

65%

Domestic market share of

engine generators (mobile-type) *According to a

Company survey

First quarter of

FY2015/3

First quarter of

FY2016/3

Rate of change

(YoY)

Welders 1,463 1,205 △ 17.6％

• In Japan, the shipment remained at the same

level as the previous fiscal year.

• Overseas, the shipment to Europe decreased.

5

55%


engine welders

*According to a

Company survey

Engine welder

The Company developed the first engine-driven welder for outdoor

work in Japan.

Ranging from 135A for welding light-gauge steel to a 500A engine-driven

welder for heavy-gauge steel, a TIG welder and a CO2 welder, etc.

Welding of steel construction for buildings, condominiums and bridges.

Welding of important structures such as petroleum storage tanks and

pipelines.

(million yen)

First quarter of

FY2015/3

First quarter of

FY2016/3

Rate of change

(YoY)

Compressors 188 291 54.8％

• Shipment to the domestic and overseas

markets slightly increased.

6

(million yen)

Engine compressor Motor compressor

Manufacturing compressors with air discharge

amounts from 1.6㎥/min to 42.4㎥/min.

Breaking-up of roads and ground improvement

work of roads

Mortar spraying work for preventing landslides of

mountain roads.

For artificial snow machines on ski slopes, etc.

20%


engine compressors

*According to a

Company survey

First quarter of

FY2015/3

First quarter of

FY2016/3

Rate of change

(YoY)

Others 1,203 1,354 12.6％

7

(million yen)

Sales of other products Self-propelled lifters

Water-related equipment

Parts

Secondhand equipment and purchased

merchandise

Repair sales, etc.

Self-propelled lifter

Water-related

equipment

• Sales of self-propelled lifters and parts increased.

First quarter of

FY2015/3

First quarter of

FY2016/3

Change

(YoY)

Rate of change

(YoY)

Net sales 11,029 100% 11,156 100% 127 1.2％

Domestic sales 5,935 53.8% 5,788 51.9% △ 147 △ 2.5％

Overseas sales 5,094 46.2% 5,368 48.1% 274 5.4％

By

reg

ion

North/Central

America 2,556 23.2% 2,383 21.4% △ 173 △ 6.8％

Asia 1,708 15.5% 2,029 18.2% 321 18.8％

Others 829 7.5% 955 8.6% 126 15.2％

0 2,000 4,000 6,000 8,000 10,000 12,000

First quarter of FY2016/3

First quarter of FY2015/3

Japan

Japan

North/Central

America

North/Central

America

Asia

Asia

Others

Others

8 (million yen)

(million yen)

• The improvement of profit ratio in the US made a contribution.

Increase in

Operating income

First quarter of

FY2015/3

First quarter of

FY2016/3 Change(YoY)

Operating income 613 806 193

Operating income margin(%) 5.6% 7.2% 1.6percentage point

First quarter of

FY2015/3

First quarter of

FY2016/3

Rate of change

(YoY)

Gross profit margin 22.7% 25.5% 2.8percentage point

Ratio of SG&A to sales 17.1% 18.3% 1.2percentage point

Ratio of operating income to

sales 5.6% 7.2% 1.6percentage point

• Gross profit margin improved slightly in Japan, and improved overseas especially in the US due to

increase in the shipment of profitable products and depreciation of the yen, etc.

• Ratio of SG&A to sales increased due to increase of depreciation expenses, personnel expenses and

research and development expenses. 9

(million yen)

10

• Net sales are expected to be 55.0 billion yen.

• Assumed exchange rate is 110 yen/dollar. Key points

FY2015/3 FY2016/3 (forecast) Change (YoY) Rate of

change(YoY)

Net sales 52,267 100% 55,000 100% 2,733 5.2%

Operating income 5,348 10.2% 5,500 10.0% 152 2.8%

Ordinary income 5,757 11.0% 5,800 10.5% 43 0.7%

Net income 3,857 7.4% 3,600 6.5% △ 257 △ 6.7%

Capital investment 2,531 － 1,000 － △ 1,531 △ 60.5%

Depreciation 999 － 1,380 － 381 38.1%

Net income per

share 179.4yen － 168.5yen － △ 10.9yen －

ROE 8.6% － 7.3% －－－

Cash dividends per

share 28.0yen － 28.0yen －－－

11

(million yen)

12

Denyo Vietnam

End of March

2013

End of March

2014

End of March

2015

End of March

2016 (plan)

Cost of

equipment 1,457 2,453 2,531 1,000

Main uses

• Laboratory & Training

Center 814

• Machinery of Fukui plant,

etc. 150

• U.S. Plant 237

• Vietnam Plant 127


etc. 480

• Nishinihon Generator Mfg.

270

• Vietnam Plant 440

• Singapore 1,100


etc. 440


160

• U.S. Plant 50

• Vietnam Plant 1,630

• Singapore 180


etc. 500

• Machinery of Shiga

plant,etc. 200


100

• Others 200

(million yen)

0

500

1,000

1,500

2,000

2,500

3,000

End ofMarch2013

End ofMarch2014

End ofMarch2015

End ofMarch2016(plan)

Amount of capital investment

million yen

•Sales of generators are expected to increase by 2,021 million yen(5.0%).

•Sales of welders are anticipated to rise by 144 million yen (2.6%).

•Sales of compressors are forecast to be up 274 million yen (24.3%).

Overview

FY2015/3 FY2016/3 (forecast) Change

(YoY)

Rate of

change

(YoY)

Consolidated

sales 52,267 100% 55,000 100% 2,733 5.2%

By

pro

duct

s

Generators 40,079 76.7% 42,100 76.5% 2,021 5.0%

Welders 5,556 10.6% 5,700 10.4% 144 2.6%

Compressors 1,126 2.2% 1,400 2.5% 274 24.3%

Others 5,504 10.5% 5,800 10.5% 296 5.4%

13

(million yen)

FY2015/3 FY2016/3 (forecast) Change (YoY) Rate of

change(YoY)

Consolidated

sales 52,267 100% 55,000 100% 2,733 5.2%

Domestic sales 31,468 60.2% 32,600 59.3% 1,132 3.6%

Overseas sales 20,799 39.8% 22,400 40.7% 1,601 7.7%

By

reg

ion

North/Central

America 11,234 21.5% 11,650 21.2% 416 3.7%

Asia 6,619 12.7% 7,700 14.0% 1,081 16.3%

Others 2,945 5.6% 3,050 5.5% 105 3.6%

0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 50,000 55,000

FY2016/3

(forecast)

FY2015/3

Japan

Japan

North/Central

America

North/Central

America

Asia

Asia

Others

Others

14

(million yen)

(million yen)

• The operating income margin slightly decreased from the previous fiscal year and the operating income is expected to increase by 152 million yen.

Increase in operating

income

FY2015/3 FY2016/3

(forecast) Change (YoY)

Operating income 5,348 5,500 152

Operating income margin 10.2% 10.0% △0.2percentage points

FY2015/3 FY2016/3

(forecast) Change (YoY)

Gross profit margin 25.1% 25.5% 0.4percentage point

Ratio of SG&A to sales 14.9% 15.5% 0.6percentage point

Ratio of operating income to sales 10.2% 10.0% △0.2percentage point

• The gross profit margin are expected to improve due to an increase in the shipment of highly profitable

products.

• The ratio of SG&A to sales are expected to worsen slightly due to increase of depreciation expenses

and personnel expenses ,etc. year on year. 15

(million yen)

16

This material contains assumptions and outlooks for the future and

forecasts based on plans as of August 6, 2015.

Actual results may differ materially from projected values due to

future economic changes and competition.

This material is prepared for the purpose of providing information

and is not meant to solicit investment in securities issued by the

Company.

Investors are responsible for making their own final investment

decision.

Documents

Briefing on Results for the First quarter of the Fiscal …Briefing on Results for the First quarter of the Fiscal Year ending March 31, 2016 1 First quarter of FY2015/3 First quarter